90-3-1003. Research and commercialization expendable trust -- use. (1) The research and commercialization expendable trust fund provided for in 90-3-1002 is statutorily appropriated, as provided in 17-7-502, to the board of research and commercialization technology, provided for in 2-15-1819, for the purposes provided in this section.
     (2) The establishment of the expendable trust fund in 90-3-1002 is intended to enhance the economic growth opportunities for Montana and constitute a public purpose.
     (3) The expendable trust fund may be used only for loans or for matching funds for grants from nonstate sources that are to be used for research and commercialization projects to be conducted at research and commercialization centers located in Montana. At least 20% of the investments made must be directed toward projects that enhance production agriculture. An amount allocated for matching funds must be matched by at least a 1-to-1 ratio.
     (4) The board shall establish policies, procedures, and criteria that achieve the objectives in their research and commercialization strategic plan for the awarding of grants and loans. The criteria must include:
     (a) the project's potential to diversify or add value to a traditional basic industry of the state's economy;
     (b) whether the project shows promise for enhancing technology-based sectors of Montana's economy or promise for commercial development of discoveries;
     (c) whether the project employs or otherwise takes advantage of existing research and commercialization strengths within the state's public university and private research establishment;
     (d) whether the project involves a realistic and achievable research project design;
     (e) whether the project develops or employs an innovative technology;
     (f) verification that the project activity is located within the state;
     (g) whether the project's research team possesses sufficient expertise in the appropriate technology area to complete the research objective of the project;
     (h) verification that the project was awarded based on its scientific merits, following review by a recognized federal agency, philanthropic foundation, or other private funding source; and
     (i) whether the project includes research opportunities for students.
     (5) The board shall direct the state treasurer to distribute funds for approved projects. Unallocated interest and earnings from the expendable trust fund must be retained in the fund. Repayments of loans and any agreements authorizing the board to take a financial right to licensing or royalty fees paid in connection with the transfer of technology from a research and commercialization center to another nonstate organization or ownership of corporate stock in a private sector organization must be deposited in the fund.
     (6) The board shall refer grant applications to external peer review groups. The board shall compile a list of persons willing to serve on peer review groups for purposes of this section. The peer review group shall review the application and make a recommendation to the board as to whether the application for a grant should be approved. The board shall review the recommendation of the peer review group and either approve or deny a grant application.
     (7) The board shall identify whether a grant or loan is to be used for basic research, applied research, or some combination of both. For the purposes of this section, "applied research" means research that is conducted to attain a specific benefit or solve a practical problem and "basic research" means research that is conducted to uncover the basic function or mechanism of a scientific question.

     History: En. Sec. 3, Ch. 563, L. 1999.